The Collapse of Building Permits: Olaf Scholz and Albuch in Construction – WELT

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opinion Fewer building permits

Federal Chancellor and political failure in construction

Head of the Department of Economics, Finance and Real Estate

Scholz dams Scholz dams

Chancellor Olaf Schultz. WELT author Jean Dames

Source: Maja Hitij / Getty Images Verena Brunning

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Olaf Schultz promised an impressive number of new apartments. Instead, the number of building permits fell by nearly a third. More and more people simply can no longer afford the prices. But instead of taking countermeasures, the government is making it more expensive to build.

sIt is always worse, as the saying goes. This is not the case for residential construction in Germany. The number of building permits collapsed in April by 32 percent. You have to go back to 2007 to find relatively bad values. Since the beginning of the year, the number has fallen by 22 percent.

this is a disaster. Because if there are too few building permits, very little will be built in the future. In a country with a severe housing shortage, especially in the cities, this isn’t just an annoying little problem. It is a political failure.

This federal government came to power with a promise 400,000 apartments per year to construct. Researchers at ifo now predict that by 2025 there will be just 200,000. Which would be 100,000 fewer apartments than in 2022. Bottom line: Traffic Light doesn’t even come close to what voters promised.

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The end of the order pipeline in the construction industry is now quite evident

Of course, there are also causes for this housing debacle that the federal government can do little about: the sharp rise in interest rates due to soaring inflation, which makes financing construction exponentially more expensive. Labor and material costs, which were further boosted by supply chain issues during the Corona pandemic. No wonder fewer and fewer individuals and professional property developers are willing or able to build at this time.

The crisis in cheaper rental apartments has been exacerbated by the strong influx of refugees Also need a place to stay.

However, if you reduce the housing crisis to these factors, you absolve the federal government of its responsibility all too easily: At the beginning of the year, traffic light tips cut subsidies for new construction and raised Germany’s already high standards of housing construction again, driving up construction costs.

Chancellor Olaf Scholz (SPD) repeatedly spoke of respect during the election campaign. In practical terms, respect may mean, for example, that housing construction is economically feasible and not more politically expensive – so that people with low and middle incomes can find an apartment. But there is little evidence of that at the moment.

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To view embedded content, your revocable consent to the transfer and processing of personal data is required, since providers of embedded content as third-party providers require such consent [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the toggle switch to ON, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain Personal Data to other countries, including the United States of America, in accordance with Article 49(1)(a) GDPR. You can find more information on this. You can withdraw your consent at any time via the switch and the Privacy Policy at the bottom of the page.

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